Bankruptcy: A condition when a trader loses all his Initial Margin during the event of Liquidation.
Take Profit: An automatic order to fully or partially close the position at a pre-set price with an acceptable profit.
Limit Order: An instruction to buy or sell on an exchange at a specific pre-set price or better.
Time in Force (TIF)
Time in Force: A special instruction used when placing an order to indicate how long it will remain active before it is executed or expires.
Maintenance Margin: A minimum amount of a trader’s money he needs to keep his position open.
Relative Strength Index (RSI)
Relative Strength Index (RSI): One of the momentum price chart indicators that serves to predict the future Bitcoin price movements and determine the bullish and bearish trends.
Ethereum Ice Age
Ethereum Ice Age: A mining difficulty adjustment that was proposed to ensure the whole Ethereum blockchain community switches from Proof-of-Work to Proof-of-Stake consensus mechanism.
Profit and Loss (PNL)
Profit and Loss (PNL): A calculation of a possible or actual profit or loss of a position on the exchange.
Conditional Order: An instruction to buy or sell that is executed at a trigger price and is used to take profit, limit loss or open a position at a desired price.
Litecoin (LTC): The first altcoin – cryptocurrency other than Bitcoin – created as a result of the first successful Hard Fork of the Bitcoin blockchain.
Insurance Fund: A balance on the exchange, filled by the Remaining Margin of a position liquidated at a price better than the Bankruptcy Price, and used to cover the loss from a position closed at a price worse than the Bankruptcy Price.
Tether (USDT): A fiat collateralized stablecoin which value is backed by the US dollar issued by Tether Limited.
Dual-Price Mechanism: A condition when Liquidation is triggered by an average market price and not the Last Traded Price of the exchange.
Bitcoin Taproot/Schnorr upgrade: A Soft Fork proposed for the Bitcoin blockchain to improve fungibility, functionality of Smart Contracts, and privacy by making all transactions appear the same to external blockchain observers.
Security Token: A digital representation of a tradable asset or a utility on a blockchain that derives its value from that asset.
Smart Contracts: A computer protocol on a blockchain that regulates the terms of an agreement between two parties. The contract is controlled by the code and is only triggered by the circumstance of execution, which eliminates the third party from participation.
Mining: Using computational power to solve complex cryptographic algorithms on a blockchain in order to get block rewards in a form of digital coins.
Perpetual Contract: A type of Futures Contract which doesn’t have an expiration date or settlement.
Lightning Network: The second layer protocol on a blockchain like Bitcoin that solves scalability issue enabling users to make fast and small cryptocurrency transactions.
Leverage: A multiplication of the Initial Margin by x to give the total position value.
Funding and Funding Rate
Funding: The periodic interest payments between traders which aim to keep the Last Traded Price as close to the Index Price as possible.
Margin Trading: 100x Leverage
Margin (Leveraged) Trading: Purchase and sale of a financial asset, like cryptocurrency, using Leverage to open larger positions with a small collateral amount in order to profit from the market swings.
Ethereum: An open-source network with its own Internet browser, a coding language built on a decentralized blockchain which serves as a platform for building applications (DApp). Ethereum has its native cryptocurrency – Ether (ETH).
Wallet: A storage for private and public blockchain keys to access, receive, or spend cryptocurrencies.
Margin, Isolated and Cross-Margin
Margin: A part of the total position value that belongs to the trader.
Liquidation: An automatic closing of the position due to a significant Margin loss.
Mark Price and Index Price
Mark Price: The average market price (Index Price) + a decaying Funding Basis.
Index Price: The average price index of a cryptocurrency on major exchanges.
Stop Loss: An automatic order to fully or partially close the position at a certain pre-set price better than the Liquidation Price to prevent further loss.
Market Order: An instruction to buy or sell “right now” at the market price.
Halving: A process of dividing the generated reward for mining the cryptocurrency like Bitcoin block in half.
Auto-Deleveraging (ADL): A loss covering system, that automatically deleverages opposing traders’ positions by profit and leverage priority. It is triggered when the Insurance Fund is insufficient to cover the loss.
Liquid Network: A parallel network that runs as a sidechain of Bitcoin enabling fast and confidential transactions of large amounts of cryptocurrency.
Cryptocurrency and Web 3.0
Blockchain is an essential part of the future of Internet! What to expect from the worldwide Web 3.0 and what’s the place of cryptocurrency within it? BTCMEX explores.
Make Blockchain Great Again!
We know cryptocurrencies used as financial support for smart contracts, asset tokenization, or derivatives trading. Tech geeks though went much further out of the box developing fabulous, cute, warmhearted, honest, and sometimes hilarious projects on the blockchain.
2017 Bitcoin Bull Run
From $900 to $20,000 – the game changing 2017 Bitcoin Bull Run explored in the BTCMEX Blog.
Tokenization and its Benefits
The new buzzword will rule the world of digital ownership, according to experts. The BTCMEX Blog is taking a glance at the tokenized future!
Black Thursday: What actually happened to Bitcoin?
March 12 is known as Black Thursday in crypto. The Bitcoin market crash of 2020 explored in today’s BTCMEX throwback.
Institutional Investment: the Future of Crypto?
Big players turned their eyes to Bitcoin. Will it drive the cryptocurrency adoption? Another bull run? How are institutional investors reshaping the world of decentralized finance? Market insights in the BTCMEX Blog!
The Bitcoin Whistleblower
Julian Assange and WikiLeaks have been long-term supporters and advocates for Bitcoin and cryptocurrency community. “The one, who kicked the hornet’s nest” in today’s BTCMEX throwback.
CBDC of China. What to expect?
China has a love-hate relationship with cryptocurrency. Despite being the biggest Bitcoin mining center in the world, crypto usage is facing strong regulations. Meanwhile, the government of PRC is incentivizing blockchain development and rolling out the national CBDC.
From Olives to Bitcoin: Evolution of Derivatives
Financial derivatives are not exclusive to cryptocurrencies and date back to ancient Greece! Speculation on an underlying asset got a new twist with the rise of digital assets known for their volatility and opportunities to profit.
You are Welcomed Here!
Cryptocurrency is for everyone! Black or white, young or old, white collar or unbanked… blockchain paves the future leveling the world’s finance playing field and giving equal opportunities for everyone!
The Evolution of Accounting
From Sumerians to triple-entry we were looking for efficient ways of building trust and effective solutions for trading and exchanging value. How did blockchain contribute to that? Expand your knowledge with the BTCMEX Blog!
Bitcoin Price: What’s Next?
Bloomberg predicts the new all-time high, while Bitcoin hovers around 10k! Crypto Twitter gives several possible scenarios. What 2020 prepared for BTC? Get info, but do your own research!
Take Profit / Stop Loss Upgrade on BTCMEX
Take Profit / Stop Loss function has been improved on BTCMEX. Automated TP/SL settings are now live and available while placing the order on our platform. Bitcoin leverage trading has never been easier!
BTCMEX A to Z
BTCMEX is a new cryptocurrency derivatives exchange that strives to offer “Opportunities for everyone” and bring the professionalism of the financial sector to digital asset trading. This article provides a complete overview of the btcmex.com exchange, its core team, vision, the trading platform’s distinctive features, and advantages.